Advanced Micro Devices Inc (AMD)

[HailMary]

that $100 ASP is a pretty reasonable goal.

An ASP of $100 would be an increase of about $30. That would add $30x7M = $210M to the bottom line per quarter. That is nearly $.60/share per quarter!

I doubt we'll see $100 ASP anytime soon unless there is a major chip shortage affecting both Intel and AMD. Remember AMD is still selling 5-6 million regular Athlons at $70 or less even in Q4. These customers are going to want replacement bargain parts, not the expensive Athlon 64s and FXs. AMD is going to have to have a bargain Athlon 64 part that sells for less than $100 or keep on continuing the regular Athlons. I don't think they can change their market overnight. Maybe in a couple of years they can be the high end player and leave the bargain areas to Intel, but I don't really expect that to happen.